Arizona's homestead exemption is one of the strongest creditor shields in the state. Under A.R.S. 33-1101, it guards your home from seizure, forced sale, and debt claims up to $400,000 in equity. The safety net kicks in on its own. You do not need to file any papers.
Who Qualifies
Any Arizona resident who is at least 18 years old and lives in the home qualifies. A person or married couple can hold only one homestead exemption at a time. It does not matter if you are single or married. The key is where you live. The property must be your main home.
The exemption covers many types of homes. Houses, condos, co-ops, mobile homes, trailers, houseboats, and even motor homes all count. You just have to live there. Rental homes, vacation spots, and investment properties do not count.
How the $400,000 Protection Works
The $400,000 figure refers to your equity, not the home's total market value. Equity is what your home is worth minus what you still owe. If your home is worth $550,000 and you owe $200,000, your equity is $350,000. That falls within the safe zone.
A person or married couple who divorces cannot stack their limits on the same home beyond $400,000 total.
Starting January 1, 2024, the limit goes up each year based on the Consumer Price Index. This keeps the shield in step with rising home values across Arizona.
No Filing Required
Under A.R.S. 33-1102, the homestead exemption applies by law. Some states make you file a form with the county. Arizona does not. If you qualify, the shield is already in place.
There is one exception. If you own more than one property that could qualify, a creditor can send a certified letter asking you to pick which one is guarded. You have 30 days to respond. You can record a homestead exemption at the county recorder or send a certified reply. If you miss the deadline, you can still claim it, but only by filing it on the record.
What the Exemption Does Not Cover
The homestead exemption is strong. But it has limits. It does not guard your home from:
- Mortgage foreclosure: If you stop paying your mortgage, the lender can foreclose.
- Property tax liens: Unpaid property taxes can force a sale.
- Federal tax liens: The IRS can place a lien for unpaid federal taxes.
- Mechanic's liens: Contractors who worked on the home may have lien rights.
- Debts tied to the home: A home equity line of credit or any loan you tied to the home is not blocked.
The exemption does guard against credit card companies, medical debt collectors, and judgment creditors. For those claims, your home equity up to the limit cannot be taken through a forced sale of the property.
Protection After Selling
If you sell your home, the exemption sticks to the cash proceeds from the sale. That shield lasts for 18 months or until you set up a new homestead, whichever comes first. This gives you time to buy a new home without losing safety during the move. Cash from a refinance is not covered.
Homestead Exemption in Bankruptcy
In bankruptcy, the exemption is locked in on the date the case is filed. If your equity is at or below the safe amount, the home is fully exempt. Any rise in value during the case stays guarded, even if total equity later tops the limit. Arizona lets bankruptcy filers use state rules. That makes the homestead exemption a key part of bankruptcy planning.
Homestead Exemption vs. Homestead Allowance
These two terms sound alike but serve different roles. The homestead exemption (A.R.S. 33-1101) guards living homeowners from creditors. The homestead allowance (A.R.S. 14-2402) is a fixed dollar amount ($18,000). A surviving spouse or dependent children can claim it from a deceased person's estate during probate. They are separate shields under different parts of Arizona law.